Listing ID: 72985
Strong profits and E-Z run. Closed Sundays. No in-house delivery.
- Asking Price: $182,500
- Cash Flow: $55,000
- Gross Revenue: $220,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 2006
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:1,200
- Lot Size:N/A
- Total Number of Employees:6
- Furniture, Fixtures and Equipment:N/A
1,200 sq. feet (MOL) in busy shopping center.
The business was founded in 2006, making the business 16 years old.
The business has 6 p.t. employees and is situated in a building with disclosed square footage of 1,200 sq ft.
The real estate is leased by the company for $1,300 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons why individuals decide to sell companies. Nonetheless, the real factor and the one they say to you might be 2 totally different things. As an example, they might state "I have way too many other commitments" or "I am retiring". For numerous sellers, these factors are valid. But also, for some, these might simply be excuses to attempt to hide the reality of changing demographics, increased competition, current decrease in revenues, or a variety of various other factors. This is why it is very important that you not rely absolutely on a vendor's word, but rather, utilize the vendor's response combined with your overall due diligence. This will repaint a much more realistic picture of the business's current situation.
Existing Debts and Future Obligations
If the current business is in debt, which many companies are, then you will have reason to consider this when valuating/preparing your deal. Lots of businesses finance loans in order to cover things such as stock, payroll, accounts payable, etc. Remember that in some cases this can suggest that revenue margins are too thin. Numerous businesses come under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may also be future commitments to take into consideration. There might be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with vendors that have to be met or might cause charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the location attract brand-new clients? Most times, businesses have repeat consumers, which create the core of their daily profits. Particular aspects such as brand-new competitors growing up around the area, road construction, and also staff turn over can impact repeat consumers as well as adversely affect future profits. One vital point to consider is the placement of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the main road? Certainly, the more people that see the business often, the greater the possibility to develop a returning customer base. A last idea is the basic location demographics. Is the business placed in a densely populated city, or is it located on the edge of town? Just how might the local typical household earnings impact future revenue prospects?